45-Hour PA Practice Final Exam Questions with Verified Answers., Exams of Company Secretarial Practice

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45-Hour PA Practice Final Exam Questions with Verified

Answers.

The final step a licensee will take when preparing a CMA is:

1. choosing comparable
2. Estimating a reasonable selling price range
3. Making adjustments to comparable
4. Collecting and analyzing information - CORRECT ANSWER: Estimating a reasonable selling price range A broker price opinion must include what the price was based on and:
5. License number
6. The broker's phone number
7. Applicable market data
8. A legal description - CORRECT ANSWER: Applicable market data If an agent is found guilty of false advertising, what may the FTC issue?
9. A summons
10. A cease-and-desist order to stop running the ad
11. A suit for defamation
12. A continuation - CORRECT ANSWER: A cease-and-desist order to stop running the ad What function does the Federal Housing Administration (FHA) play in the mortgage loan process?
13. FHA builds homes
14. FHA insures loans
15. FHA lends money
16. FHA establishes national interest rates on mortgage loans - CORRECT ANSWER: FHA insures loans Contract law states that a material breach of contract is a (n):
17. Reparable break in a legally binding contract
18. Contract section that can be omitted based on a written agreement of all parties
19. Irreparable break in a legally binding contract

4. Contract that lacks the ability to undergo due process - CORRECT ANSWER: Irreparable break in a legally binding contract Which appraisal approach is a means of appraising a property based on the assumption that value is equal to the present worth of future rights to income?
5. Cost
6. Income
7. Sales comparison
8. Value analysis - CORRECT ANSWER: Income Who provides detailed information about identifying consumer issues?
9. The Office of PA's Attorney General
10. The PA Dep't of Economic Development
11. The PA Dep't of General Services
12. The Dep't of PA's Revenue - CORRECT ANSWER: The Office of PA's Attorney General Individuals and business organizations whose sole enterprise is performing a real estate-related service or function are called:
13. Investment specialists
14. Property experts
15. Real estate professionals
16. Mortgage brokers - CORRECT ANSWER: Real estate professionals What does Entitlement refer to in a Department of Veterans Affairs loan?
17. The maximum interest rate that a veteran can pay on any type of mortgage loan
18. The maximum number of dollars that the borrower must deposit when seeking a DVA loan
19. The maximum number of dollars that DVA will pay if the lender suffers a loss
20. The maximum number of grace period days allowed for the borrower to be late with a loan payment - CORRECT ANSWER: The maximum number of dollars that DVA will pay if the lender suffers a loss In what type of residential building does each owner have a percentage of ownership of the entire property?

1. An apartment building
2. A condominium
3. A modular home
4. A time-share - CORRECT ANSWER: A condominium If product price increases, demand is increasing in relation to:
5. Deficiency
6. Price
7. Supply
8. Debt - CORRECT ANSWER: Supply What do you call an individual broker who is employed by another broker?
9. A salesperson
10. An associate broker
11. A subagent
12. A principal - CORRECT ANSWER: An associate broker Compensation that a broker receives is generally revealed in a listing agreement, a buyer's agency agreement or:
13. A unit pricing agreement
14. A management agreement
15. A cost plus agreement
16. A material contract - CORRECT ANSWER: A management agreement A breached contract is a (n):
17. Completed contract
18. Broken contract
19. Implied contract
20. Valid contract - CORRECT ANSWER: Broken contract

What is the position regarding the offering of premiums, prizes, or merchandise to list a property?

1. it’s always ethical
2. Its considered unethical, if a limited time offer is required
3. Its considered ethical, provided the value of such item or service is less than $
4. Its unethical - CORRECT ANSWER: It's unethical According to Freddie Mac guidelines, funds from gifts may be used as all or part of the 20% down payment. However, Freddie Mac requires a minimum 5% borrower contribution if the down payment is less than:
5. 7%
6. 10%
7. 20%
8. 25% - CORRECT ANSWER: 20% The Fair Housing Act protects which of these persons?
9. A person recovering from substance abuse
10. Illegal drug users
11. Juvenile offenders
12. Sexual offenders - CORRECT ANSWER: A person recovering from substance abuse What is another term given to savings and loan associations?
13. Savings banks
14. Quick banks
15. Lender owned banks
16. Secondary banks - CORRECT ANSWER: Savings banks Agent Mary had an ethics complaint filed against her by a buyer with whom she had a buyer's agreement. An article was cited in the violation, along with a supporting Standard of Practice. Mary could be found:
17. in violation of the associated Article
18. in violation of state law and be assessed a fine
19. in violation of a Standard of Practice

4. in violation of the Preamble - CORRECT ANSWER: In violation of the associated Article What is the only federal grant program with the sole purpose of helping private organizations prevent and address housing discrimination issues?
5. The Fair Housing Initiatives Program
6. The Fair Housing Accessibility Program
7. The Fair Housing Assistance Program
8. The National Fair Housing Alliance Program - CORRECT ANSWER: The Fair Housing Initiatives Program According to the CAN-SPAM Act, commercial e-mailers must reveal the identity of the sender and:
9. The phone number of the advertiser entity
10. The name of the advertiser entity
11. Records of consent
12. The address of the advertiser entity - CORRECT ANSWER: The name of the advertiser entity What is it called when another lender buys a mortgage loan?
13. Possession
14. An annexation
15. An allocation
16. An assignment - CORRECT ANSWER: An assignment When must cooperating brokers determine their compensation terms?
17. They must determine compensation before beginning efforts to accept the offer of cooperation
18. They must determine compensation within one week of closing
19. Compensation must be determined after beginning efforts to accept the offer of cooperation
20. Compensation must be determined soon after an offer has been accepted by the seller - CORRECT ANSWER: They must determine compensation before beginning efforts to accept the offer of cooperation

What happens when the agent intentionally fails to reveal a material fact?

1. Fraud
2. Silent Misrepresentation
3. Negligence
4. Puffing - CORRECT ANSWER: Silent misrepresentation What section of the Buyer Agency Contract states that the contract is self-inclusive and any changes must be in writing and approved by all parties?
5. Entire contract
6. Expertise of Real Estate Agents
7. Transfer of this contract
8. Confidentiality - CORRECT ANSWER: Entire contract Within what how many days after receiving a complaint will HUD determine if there is reasonable cause to charge discrimination?
9. 30
10. 45
11. 90
12. 100 - CORRECT ANSWER: 100 What is a good faith gesture that shows the seller that the buyer is serious about the offer and intends to carry out the terms of the contract?
13. A certificate of deposit
14. A down payment
15. The earnest money deposit
16. A demand deposit - CORRECT ANSWER: Earnest money deposit Who is responsible for the actions of real estate agents?
17. The broker
18. The commission
19. The agents
20. NAR - CORRECT ANSWER:

The broker Exclusionary discrimination is typically:

1. Broad
2. Innocent
3. Subtle
4. Obvious - CORRECT ANSWER: Subtle What the market recognizes as "the change in value an improvement makes to a property" is called what?
5. Competition
6. Contribution
7. Change
8. Conformity - CORRECT ANSWER: Contribution When a buyer makes payments on a mortgage the amount going to interest decreases and the amount going to the principal:
9. Stays the same
10. Increases
11. Fluctuates
12. Decreases - CORRECT ANSWER: Increases What is a one page document that is used to update or make changes the Seller's Property Disclosure Statement?
13. A Settlement Statement
14. The Seller's Property Disclosure Statement Addendum
15. A title statement
16. A Counteroffer Addendum - CORRECT ANSWER: The Seller's Property Disclosure Statement Addendum Who works on behalf of landlords and property management companies to collect rent and provide customer service for renters and tenants?
17. A leasing consultant
18. An arbitrator

3. A broker
4. An escrow agent - CORRECT ANSWER: A leasing consultant What describes land and anything attached to it?
5. Chattel
6. Real property
7. Appurtenances
8. Personal property - CORRECT ANSWER: Real property What section of the Seller's Property Disclosure discusses defects in flooring?
9. Other Equipment and Appliances
10. Additional/Alternations
11. Structural Items
12. Basements and Crawl Spaces - CORRECT ANSWER: Structural Items What causes population shifts away from or toward a certain locale?
13. Emotional Attachment
14. Environmental Consciousness
15. Area preference
16. Functional utility - CORRECT ANSWER: Area preference When a home is listed, typically demand and interest fade after:
17. 3-4 weeks
18. 5-6 weeks
19. 2 months
20. 3 months - CORRECT ANSWER: 3-4 weeks Flood insurance protects the owner from damage caused by:
21. Broker pipes and leaky roofs
22. Swimming pool leaks and sewer backups
23. Floods or tidal waves

4. Septic tank leaks and broker drains - CORRECT ANSWER: Floods and tidal waves When evaluating a credit report, what do lenders typically use to determine if a borrower will qualify for a loan?
5. Payment history
6. The borrower's income
7. A CMA
8. Qualifying ratios - CORRECT ANSWER: Qualifying ratios What type of negotiation skills training is offered by the National Association of REALTORS?
9. The Real Estate Negotiation Expert certification
10. The Real Estate Arbitration Skills certification
11. The Real Estate Communications Skills certification
12. The Real Estate Compliance Skills certification - CORRECT ANSWER: The Real Estate Negotiation Expert certification Credit unions and commercial banks are what type of lenders?
13. Secondary mortgage market lenders
14. Primary mortgage market lenders
15. outside mortgage market lenders
16. Ancillary mortgage market lenders - CORRECT ANSWER: Primary mortgage market lenders What instrument does a trustee use to recovery title back to the borrower?
17. Deed of Conveyance
18. Deed of Title
19. Relinquish Deed
20. Order of Deed - CORRECT ANSWER: Deed of Conveyance What is the longer period a listing contract can last?
21. 6 months
22. 9 months

3. 1 year
4. 2 years - CORRECT ANSWER: 1 year How are salespersons, who are independent contractors paid?
5. with a weekly salary
6. by the job
7. with a monthly salary
8. by the hour - CORRECT ANSWER: By the job Loan novation is a form of:
9. Payment in advance
10. A seller's leaseback
11. Blanket loan
12. Assumption and assignment - CORRECT ANSWER: Assumption and assignment What covenant assures that the grantor owns the estate to be conveyed and has the right to do so?
13. The covenant against encumbrances
14. The covenant of further assurance
15. The covenant of seize
16. The covenant of warranty forever - CORRECT ANSWER: The covenant of seize What is a promissory note?
17. A contract that the lender will provide the required mortgage money
18. A letter of loan approval
19. A contract that is a promise to pay back a loan - CORRECT ANSWER: A contract that is a promise to pay back a loan What are two types of breach of contract damages?
20. Punitive damages and non-punitive damages
21. Conveyance damages and actual damages
22. Damages by design and fraud damages

4. Loss of bargain damages and special damages - CORRECT ANSWER: Loss of bargain damages and special damages Before an agent makes contact with a FSBO he or she should:
5. Speak to the neighbors
6. Consult the broker
7. Check the Do Not Call List
8. Call the number on the FSBO sign - CORRECT ANSWER: Check the Do Not Call List Where does most predatory lending occur?
9. The primary market
10. The middle market
11. The subprime market
12. The standard market - CORRECT ANSWER: The subprime market An underwriting red flag occurs when there is a gift letter without:
13. A co-signer
14. Liquid assets
15. Any bank statements to back it up
16. A verification date - CORRECT ANSWER: Any bank statements to back it up What is an area of commercial law that deals with a set of contractual, quasi-contractual and non-contractual fiduciary relationships involving an agent and a principal to create legal relations with a 3rd party?
17. License law
18. The law of agency
19. The law of business formation
20. Intellectual property law - CORRECT ANSWER: The law of agency What type of loan could be a wise choice for someone who plans to own the property for a short time and believes the property will appreciate during that time?
21. Interest-only loan

2. Balloon loan
3. Amortized loan
4. Adjustable Rate Mortgage - CORRECT ANSWER: Interest-only loan When does economic life begin?
5. When the improvements are constructed
6. When the property is purchased
7. Close to the completion of the improvements
8. None of the above - CORRECT ANSWER: When the improvements are constructed What are the exemptions on small businesses due to the Taxpayer Relief Act?
9. The excise tax
10. Self-employment tax
11. The alternate minimum tax
12. Income tax - CORRECT ANSWER: The alternate minimum tax Mediation is used to avoid
13. A civil penalty
14. Attorneys
15. Taking a case to court
16. Having a felony on record - CORRECT ANSWER: Taking a case to court What is a comparison of the prices of similar properties that have recently sold, similar properties currently on the market, and properties that have not sold called?
17. An assessment
18. A chain of title
19. A CMA
20. An approximation - CORRECT ANSWER: A CMA Units of demand, by property classification are residential, agricultural, commercial, and:
21. Office

2. Industrial
3. Special Purpose
4. Recreational - CORRECT ANSWER: Industrial A listing presentation should cover your skills and expertise as well as:
5. That of your firm
6. That of the title company
7. That of cooperating agents
8. That of potential lenders - CORRECT ANSWER: That of your firm Silence often conveys a sense of:
9. Loss and defeat
10. Agreement and acceptance
11. Control and power
12. Disrespect and contempt - CORRECT ANSWER: Control and power What do parties create when they have no formal agency relationship by develop one through actions?
13. Express agency
14. Special agency
15. Implied agency
16. General agency - CORRECT ANSWER: Implied agency What document itemizes the real estate taxes on a home and whether any taxes are due or are paid in full?
17. A tax cert
18. An amortization schedule
19. An assessment
20. A chain of title - CORRECT ANSWER: A tax cert What type of survey gives the estimated location of a home and improvements on the lot, with the accuracy of plus or minus one foot?

1. Rods and yards
2. Spot
3. Stake
4. Boundary - CORRECT ANSWER: Spot Since the Department of Veterans Affairs (DVA) lenders are now protected in the event of a default by the borrower, lenders have agreed to loan:
5. Two times the current DVA Entitlement
6. Three times the current DVA Entitlement
7. Four times the current DVA Entitlement
8. Five times the current DVA Entitlement - CORRECT ANSWER: Four times the current DVA Entitlement One example of discrimination in lending is:
9. Advertising a property as restricted in some way
10. Refusing membership to an MLS service
11. Discriminating in a property appraisal
12. Refusing to rent to a person who is a member of a protected class - CORRECT ANSWER: Discriminating in a property appraisal An arrangement that requires the buyer to agree to something in exchange for the sale is called:
13. A tie-in arrangement
14. Price fixing
15. Market allocation
16. A group boycott - CORRECT ANSWER: A tie-in arrangement What is the payment schedule for most mortgage loans?
17. Mortgage loans are paid in advance
18. Mortgage loans are paid in arrears
19. Mortgage loans are paid on the 10th of each month
20. Mortgage loans are based on 365 days in the year - CORRECT ANSWER: Mortgage loans are paid in arrears

What is a legal remedy intended to mitigate or correct an ethical issue?

1. A gov't regulation
2. A statute
3. Ethical marketing
4. A social proclamation - CORRECT ANSWER: A gov't regulation The two types of municipal bonds are general obligation (GO) bonds and:
5. Investment bonds
6. Revenue bonds
7. Government bonds
8. Corporate bonds - CORRECT ANSWER: Revenue bonds When does possession transfer in most transactions?
9. Two days after closing
10. before closing
11. after inspections
12. The day of closing - CORRECT ANSWER: The day of closing What should a broker consider if a seller insists on an exaggerated listing price?
13. Using a subagent for the listing
14. Refusing the listing
15. Taking the listing - CORRECT ANSWER: Refusing the listing A market study is made to find those comparable sales and listings that are what?
16. Exactly like the property being appraised
17. Similar to the property being appraised
18. in the same neighborhood as the subject property, regardless of the comparable homes' size, value, or other features
19. Taken from the past 5 years - CORRECT ANSWER: Similar to the property being appraised

Properties that have existing easements could be viewed as:

1. More desirable
2. Equally desirable
3. Less desirable
4. Overpriced - CORRECT ANSWER: Less desirable If an agent who represents the seller, gives advice to a buyer regarding an offering price, what type of agency would it create?
5. Sub agency
6. Designated agency
7. Undisclosed dual agency
8. Single agency - CORRECT ANSWER: Undisclosed dual agency In contract terms, the exchange of something of value is called:
9. A sum
10. A retainer
11. Consideration
12. A place holder - CORRECT ANSWER: Consideration